Fax machines live on in some small businesses solely to communicate with government departments that have not updated their procedures, says the Canadian Federation of Independent Business. (Flickr)

B.C. employer health tax wins ‘paperweight award’ for red tape

Businesses forced to estimate payroll, pay new tax quarterly

The B.C. government’s new employer health tax has made the Canadian Federation of Independent Business 2020 “paperweight awards” list, an annual contest for “the worst examples of useless and excessive regulations.”

The tax that took effect in 2019 to replace B.C.’s Medical Services Plan premiums is assessed on payrolls of more than $500,000. Small businesses such as restaurants are facing a March 31 deadline to pay smaller amounts for 2019, and most businesses have been required since last year to pay the tax quarterly.

The tax “forces business owners to pay quarterly instalments based on estimates of their payroll, not their actual payroll,” the CFIB said in its announcement of the awards.

B.C.’s union-only public construction regulation also won a paperweight award, “for forcing employers and employees to comply with 336 pages of complex, inflexible union rules that go as far as outlining what kind of meat and condiments are acceptable in sandwiches.”

RELATED: Full weight of employer health tax to be felt in 2020

RELATED: Highway cost jumps 35% with union construction deal

The awards are part of the CFIB’s 11th annual Red Tape Awareness Week, which includes an open letter to all governments calling for them to take “at least one meaningful step to modernize in 2020.”

A symbol of the 2020 government reform effort is the fax machine, with a social media hashtag #axethefax.

“It’s crazy that in 2020 some business owners keep a fax machine solely to deal with governments, or have to stand in line for a simple business licence application,” said Jordi Morgan, CFIB’s vice president for Atlantic Canada. “This kind of red tape costs Canadians and small businesses countless hours of wasted time and frustration.”

Other paperweight winners include Alberta Gaming Liquor and Cannabis, which forces small brewers that outsource their brewing to a contract manufacturer to ship all of the final products to one of two official warehouses near Edmonton before they can sell at their store-fronts, “even if the contractor is located right next door.”

Several federal government departments make the list, including the Canada Revenue Agency for its collection of federal carbon tax. It requires truck drivers who drive through multiple provinces to fill out and return forms every quarter, “with complex math to show how much fuel was bought and used in each province.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Cold water swimming a morning ritual for Willows Beach crew

Group turned heads when they slow-walked into the Polar Plunge

South Vancouver Island B.C. Hydro Customers without power

Due to high winds nearly 3,900 B.C. Hydro customer will be out of power

Sidney signs off on 2020 budget with 1.79 per cent tax increase

Budget also includes additional funding for Shaw Centre for the Salish Sea

Search begins for two missing scouts near Sooke

Crews headed to Jordan River area after receiving call just after 2 p.m.

Scaffolding falls due to strong winds at Millstream Village Sunday afternoon

No injuries or vehicles damaged, according to West Shore RCMP

VIDEO: 2020 BC Winter Games wrap up in Fort St. John as torch passes to Maple Ridge

More than 1,000 athletes competed in the 2020 BC Winter Games

Massive early-morning blaze destroys Vancouver Island home

Firefighters from three departments called in to battle fire at unoccupied residence

Still six cases of COVID-19 in B.C. despite reports of Air Canada passenger: ministry

Health ministry wouldn’t comment on specific flight routes

Violent ends to past Indigenous protests haunt Trudeau government

Trudeau adopted a more assertive tone Friday, insisting the barricade must come down

VIDEO: Wounded Warrior Run leaves Port Hardy on eight-day trek down Vancouver island

The team’s fundraising goal this year is $250,000, which is double last year’s goal.

HIGHLIGHTS: Day one and two at the 2020 BC Winter Games

Athletes had sunny – but cold – weather to work with in Fort St. John

Most Read